Is your indirect lending provider checking all the boxes?


July 26, 2022

Vicky Kinsey, VP of Marketing

In October of 2020, North Carolina Community Federal CU (NCCFCU) was working with an established national provider for indirect lending services. Even though they had an indirect program, they were still processing and decisioning all loans with no after-hours coverage. One of their big challenges was the fact that they had an incredibly low look-to-book percentage (below 5%), mostly because they were at best, the second or third look choice for the rank-and-file dealership on a platform that dealers did not use for their captives and other tier-1 lenders. In addition, their in-person dealer representation, while sporadic at best, was only possible on a local level and was experiencing staffing challenges.

When they set out to look for a better option, they had very clear goals in mind:  Increase consumer loan production at an acceptable rate of return, partner with an underwriter that reflected their tolerance for loan risk, make more efficient use of resources dedicated to this stream of income, obtain consistent and efficient in-person dealer representation and capture opportunities after-hours.

Following several in-depth discussions, it became clear that CUAC’s underwriting methods were in step with their tolerance for loan risk and that their program would also eliminate direct contact with the dealerships while providing regular in-person representation. CUAC allows for pricing adjustments when deemed necessary and provides useful information on the market. CUAC’s very responsive customer service department and straightforward pricing were also a big draw. NCCFCU joined the CUAC program in October of 2020 and has enjoyed an overall successful partnership since that time.

“We were pleased to begin our partnership with CUAC! NCCFCU can now take advantage of CUAC’s vast expertise and network to help us navigate the incredibly competitive landscape of auto dealer financing within our industry.” Said Rex Pennington, Chief Lending Officer at NCCFCU, at the time of the announcement. When asked about their current experience working with the CUAC Team, he said, “CUAC has checked all the boxes and come through with nearly every goal we set almost two years ago, even during the challenging pandemic times, our experience has been mostly positive. Everyone is always very responsive to our needs and willing to help work out the occasional kinks.”

Speaking with Brad Lewis, Dealer Representative for the NC market, he had this to say: “I really enjoy working with Rex, Brittany, and their lending team.  They are very straightforward with their goals and objectives while also being very supportive.  I think we are an excellent fit for their size of credit union and what they are trying to accomplish.”

Kurt Howard, COO of CUAC had this to say.  “I really enjoy the relationship we have helped develop with NCCFCU.  They were part of a program that is more of a cookie cutter approach and technologically speaking, not conducive for success since dealers have to use 3RD party software to submit applications when their captives and all other lenders are on Dealertrack and RouteOne.  With CUAC, they have access to both portals, digital contracting, and the other key components required to compete with those other lenders. I look forward to working with Rex and his team for many years to come.”

If you are interested in taking your credit union or CUSO’s indirect program to the next level, please reach out to Kurt Howard at or online at

Is your indirect lending provider checking all the boxes?

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